The Insurance Australia Group Ltd (ASX: IAG) share price is in the green in the past month, but could it go higher?
IAG shares have jumped more than 6% since market open on 11 April and are currently trading at $4.63 apiece. That's up 0.22% on yesterday's closing price. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 2.27% at the time of writing.
Let's take a look at the outlook for this insurance company.
Could IAG go higher?
Wilsons analysts have named IAG as a 'defensive growth' share that could be a buy in turbulent times.
In a memo to clients, the team predicted the next couple of months will be edgy as rates rise. Wilsons said:
The narrative has changed slightly over the last month with defensives starting to outperform the market. Our picks are healthcare, insurance and telco.
IAG was named specifically by Wilsons. Other defensive shares recommended included CSL Limited (ASX: CSL), Healthco Healthcare and Wellness REIT (ASX: HCW), and Telstra Corporation Ltd (ASX: TLS).
The IAG share price climbed 3.65% in the month of April, outperforming the ASX 200 index. As my Foolish colleague Brooke reported recently, IAG offers a dividend reinvestment plan (DRP). This provides shareholders with the opportunity to receive IAG dividends as new shares instead of cash.
Share price snapshot
Despite falling 10% in the past year, the IAG share price has jumped more than 8% year to date.
For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has slumped 3% in the past year.
IAG commands a market capitalisation of around $11.3 billion based on the current share price.
